As Gen Z becomes a substantial part of the donor base, what matters to them and how they prefer to give becomes even more important to consider.
Gen Z, born between 1997 and 2012, is influencing how nonprofits and charities operate. Their unique preferences set them apart from Millennials and Gen X. Let’s explore what matters most to Gen Z, why they choose specific causes, and how they prefer to give.
Top Causes for Gen Z:
Climate Change: Gen Z grew up with news of environmental crises, making climate change a top concern. They support green practices and sustainable initiatives. According to a 2021 Deloitte survey, 26% of Gen Z considers climate change their primary concern.
Social Justice: Equality matters greatly to Gen Z. Movements like Black Lives Matter and LGBTQ+ rights resonate with them.
One Gen Z donor explained, “I’m drawn to nonprofits based on their story. I look for organizations that help communities I’m part of or those facing specific disadvantages. For instance, I know queer youth are more likely to struggle with homelessness.”
Mental Health: Given the pressures of modern life and social media, mental health is a priority. A staggering 91% of Gen Z adults report stress-related symptoms (American Psychological Association).
Economic Inequality: Gen Z also focuses on economic disparities and poverty. About 36% highlight economic inequality as a major issue.
What Attracts Gen Z Donors to Specific Organization:
- Transparency and Trust: Gen Z wants to know where their money goes. Nonprofits that openly share financial breakdowns and future plans gain their trust. Transparency matters—details about fees and employee costs enhance credibility.
One of Pllenty’s Gen Z donor summarized their need for transparency by saying “I like knowing where my money is going – so I look into quarterly breakdowns, into game plans for what they plan to do with future donations. I value transparency also, so when I see things about how much go into covering fees or employee costs, that makes me trust a nonprofit more.”
- Digital Donations: Gen Z prefers online platforms. Websites, apps, and social media are their go-to channels. Yahoo Finance reports that nearly half (48%) of Canadian Gen Z donors prefer online giving, with the majority (64%) using mobile devices.
- Small, Frequent Contributions: Micro-donations and crowdfunding appeal to Gen Z. They want to see the direct impact of their contributions. Around 40% have participated in crowdfunding campaigns.
- Engaging Content & Social Media: Gen Z loves interactive stories. Nonprofits using videos, infographics, and engaging posts on social media capture their attention.
Converting Potential Gen Z Donors into Champions:
- Use Social Media to Tell Stories: Platforms like Instagram, TikTok, Twitter, and Snapchat are crucial to reaching the Gen Z donors. Pew Research Center reports that 95% of teens use YouTube, and 67% use TikTok.
- Tap into Influencer Collaborations: Partnering with influencers amplifies reach. Gen Z is four times more likely than traditional donors to learn about causes through influencers or celebrities (Classy’s Why American Gives Report).
- Virtual Events: Webinars and virtual fundraising events allow broader participation and cost-effectiveness. Live streamed and Gaming events are also popular amongst the Gen Z cohort.
- Mobile-First Approach: Given that most Gen Z individuals own smartphones, mobile optimization for websites and donation platforms is critical to building a long term relationship with Gen Z donors.
- Special In-person Events beyond the Usual: Gen Z donors are attracted to in person events that go beyond walkathons – such as “garage sale” or bazaar type fundraiser, and pop-up events like art installations.
Gen Z’s philanthropic approach reshapes nonprofits. By valuing transparency, digital engagement, and authentic storytelling, nonprofits can effectively engage this socially conscious, tech-savvy generation and drive positive change.
What strategies have you used to engage Gen Z donors for your cause?
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